If you could get the lender to agree to a short sale, even if you have to accept a note for part of the shortage or bring cash to closing, may be the escape that costs you the least.I seriously doubt that holding onto this for three years and continuing to take your monthly loss will result in a net improvement.

Thank you so much for your endless hard work on investing time and energy on this site.

I have recently considered refinancing out of my FHA down to a 15 year fixed which would equate to what I currently pay for my 30 year FHA along with my home improvement loan.

They are fast, efficient, very easy to work with, and are incredibly responsive.

Is there a potential for improvements allowing the future owner to raise rents???

Basic steps to improving overall cash flow fall into 2 categories: Either increase income or decrease expenses.

I have known many investors who have tried to offer every type of service possible to entice tenants, but it does not necessarily improve performance of a tenant on a property.

I also am aware that this may require some improvements, which eventually I would like to do anyway.

A slight improvement might be possible, no more than a few percent per year.

If you improve on those terms in some way (e.g., less down), you will take a hit in some other way.Be careful not to accept what seems like a big improvement but leaves you holding the bag in some other way.